GrantIm relieved that the deal has finally been done. However as...

Grant

Im relieved that the deal has finally been done. However as you have noticed the announcment does raise questions.

1. It indicates that ATC is now going to have someone prepare an Independant Report for inclusion in XGM. I would have thought due diligence would have been done ages ago when the deal was initially announced the market. What if this report when released says that you paid too much?

2. Convertible note. Details here are needed. Given that they had to seek a debt/equity instrument for a paltry $750,000 appears to support the view that the 2 mill in the bank as at 30/9/02 was being burned up by its current trading operations.

3. Dillution is a big issue, however this can be reduced if they can get the price up. If they end up with say 300mill shares on issue and profit after tax of 20mill as previously stated, this would given an earnings per share of 6.6c a share. On a conservative p/e multiple of 8, the price should be around 53c.